this post was submitted on 31 Oct 2023
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Contributing to an HSA (self.personalfinance)
submitted 1 year ago* (last edited 1 year ago) by root to c/[email protected]
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I have been contributing to a HSA the last couple years, and it's been fine. My work contributes $1800 over the year and it hasn't really been a problem at all.

Now I have a kid and a spouse on my insurance, and they tend to go fairly often it seems. The copay and deductible on the HDHP is a bit crazy and I'm thinking of swapping to a PPO. Is that a good idea, or is turning down the free $1800 from my work a no no?

Here is a link to the plans

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[–] Stupidmanager 7 points 1 year ago

Been there. It came down to your total deductible for your family HDHP plan. for me it was out of pocket max 6k for the family HDHP, and HSA was $6700. So, immediately, i’m up $700 every year on an account I can keep (unlike medical FSA). Hit that $6000, no more out of pocket for in network care till next calendar year.

Look PPO is nice because it’s smaller deductibles up front, where-as HDHP is visit costs till you hit your out of pocket max. you get FSA up front, but it’s use it or lose it funds. So often people get FSA and find themselves end of year buying stuff from the FSA store to max it out. HSA is yours, earns interest (usually) and can be used post retirement. not to mention it’s only spent when you need it and carries over yearly, so don’t spend this year at all, you now have more for next year.

Family of 5, HDHP was a life saver once we figured out HSA.